Penske Automotive Group Inc

PAGConsumer Cyclical

Sentinellis Health Score

3.7/10

Significant risks

Market Cap

$10.3B

Revenue

$31.8B

P/E Ratio

11.3x

AI Summary

Penske operates franchise dealerships selling new and used vehicles, provides maintenance and repair services, sells finance and insurance products, and distributes heavy-duty trucks including Freightliner, Western Star, and MAN brands [Yahoo Finance]. They generate revenue through vehicle sales, service operations, parts distribution, and collision repair across multiple international markets [Yahoo Finance].

Penske Automotive Group is a global automotive and commercial truck dealership operator with 28,800 employees across the US, UK, Germany, Italy, Japan, Canada, Australia, and New Zealand [Yahoo Finance]. The company just announced its 22nd consecutive quarterly dividend increase to $1.42 per share, reflecting ongoing profitability despite flat revenue growth [Yahoo Finance]. However, the company carries elevated debt at 5.2x net debt to EBITDA and faces margin pressures typical of the capital-intensive dealership industry [Yahoo Finance].

Moderately healthy cash generation but burdened by high debt levels and weak margins

Confidence7/10